Default Replacement Fund: L&G Life Close Sustainable Select Fixed Income Fund
Closing Fund TER: 0.52
Default Replacement Fund TER: 0.52
Objective of Default Replacement Fund: The investment objective of the fund is to generate income while maintaining its capital value over the medium term (i.e. more than 5 years). The Fund also seeks to maintain a weighted average carbon intensity (tonnes of Scope 1 and 2 CO2e per US$m of revenue) below a benchmark of the ICE BofA Global Corporate Index, targeting a level 50% below this benchmark by 2030 from 2019 baseline, and net zero by emissions by 2050.
Default Replacement Fund: L&G Pension Close Sustainable Select Fixed Income Fund
Closing Fund TER: 0.52
Default Replacement Fund TER: 0.52
Objective of Default Replacement Fund:
The investment objective of the fund is to generate income while maintaining its capital value over the medium term (i.e. more than 5 years). The Fund also seeks to maintain a weighted average carbon intensity (tonnes of Scope 1 and 2 CO2e per US$m of revenue) below a benchmark of the ICE BofA Global Corporate Index, targeting a level 50% below this benchmark by 2030 from 2019 baseline, and net zero by emissions by 2050.
The OMR Fidelity Emerging Europe Middle East & Africa fund invests in the Fidelity Emerging Europe Middle East & Africa, managed by Fidelity International (the Fund Manager). We previously notified investors in the OMR fund that this was suspended to purchases/new business last year as a result of the Ukraine and Russia conflict.
The Fund Manager has now advised us that they plan to re-open the non-Russia linked underlying assets of the fund fully. In order to do this, they will be setting up a new share class called the Fidelity Sustainable Emerging Markets Equity Fund, which will hold the non-Russian linked liquid assets. For investors in the OMR Fidelity Emerging Europe Middle East & Africa fund currently, this will mean that the fund you hold will change name to the OMR Fidelity Sustainable Emerging Markets Equity fund on or shortly after 29/03/2023. Additionally, the fund will be made fully open to purchases and sales at the same time. There will be no customer switch reflected on plans as the result of this change in underlying asset.
Following the conversion date policyholders will not be able to buy or sell shares in the Russian linked illiquid assets, as Fidelity International will take the necessary steps to close the underlying fund and sell these remaining assets when possible. In the current environment it is not possible to estimate how long this process might take to complete, or what the eventual value might be. Given that the Fund Manager is unable to accurately reflect a value of these assets currently, plans will not show any value held within these assets following the changes above.
A further letter to the policyholders will be issued shortly explaining what this means for them and what their options are.
Findlay Park Funds (the Fund Manager) will be changing the name of the shareclass that the Findlay Park American fund invests in.
Old Shareclass name: Findlay Park American Stg Unhgd GBP
New Shareclass name: Findlay Park American Class I GBP
Default Replacement Fund: OMR Jupiter Global Emerging Markets Fund
Closing Fund TER: 1.21%
Default Replacement Fund TER: 1.06%
Objective of Default Replacement Fund: The objective of the fund is to seek to achieve asset growth through investment in a well diversified portfolio of equity securities of issuers in the Emerging Markets or of issuers established outside of the Emerging Markets, which have a predominant proportion of their assets or business operations in the Emerging Markets and which are listed, traded or dealt in on a Regulated Market worldwide. It is not proposed to concentrate investments in any one industry or sector.This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
New Name: OMR Jupiter Asia Pacific Income Fund (IRL)
New Objective: The objective of the Fund is to seek to achieve long term capital growth and income. Investors should be aware that there is no guarantee that the Fund will achieve its investment objective. The Fund will aim to achieve its investment objective by investing not less than 70 % of the Net Asset Value of the Fund in equity and equity related securities (“Equity and Equity Related Securities”) of issuers which (i) are incorporated, headquartered, listed or have their registered office in the Asia Pacific region (excluding Japan); or (ii) which have a predominant proportion of their assets or business operations in the Asia Pacific region (excluding Japan).
The Fund has no restrictions as to the proportion of assets allocated to emerging markets, companies of any particular market capitalisation and may invest across a range of economic sectors. Equity and Equity Related Securities shall include equities, depositary receipts, preference shares, equity linked notes (unleveraged debt securities linked to the performance of equities), warrants (not more than 5% of the Fund’s Net Asset Value), convertible securities (such as convertible preference shares, share purchase rights and bonds convertible into common or preferred shares).
This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
New objective: The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the iBoxx Sterling Corporates GBP Index, over any five-year period.
At least 70% of the Fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities including investment grade Asset-Backed Securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency. This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
New objective: The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the composite index, over any five-year period. The composite index is made up of one third Bloomberg Global Treasury Index GBP Hedged, one third Bloomberg Global Aggregate Corporate Index GBP Hedged and one third Bloomberg Global High Yield Index GBP Hedged.
At least 50% of the Fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade unrated securities and ABS. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets.These securities can be denominated in any currency.
New objective: The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the composite index, over any five-year period. The composite index is made up of one third Bloomberg Global Treasury Index GBP Hedged, one third Bloomberg Global Aggregate Corporate Index GBP Hedged and one third Bloomberg Global High Yield Index GBP Hedged.
At least 50% of the Fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade unrated securities and ABS. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets.These securities can be denominated in any currency.
New objective: The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the composite index, over any five-year period. The composite index is made up of one third Bloomberg Global Treasury Index GBP Hedged, one third Bloomberg Global Aggregate Corporate Index GBP Hedged and one third Bloomberg Global High Yield Index GBP Hedged.
At least 50% of the Fund is invested, directly or indirectly through derivatives, in debt securities, including investment grade bonds, below investment grade unrated securities and ABS. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets.These securities can be denominated in any currency. This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
